Analyzing Transactions Using the Financial Statement EffectsTemplate Following are selected transactions of Mogg Company.Record the effects of each using the financial statement effectstemplate. Shareholders contribute $10,000 cash to the business inexchange for common stock. Employees earn $500 in wages that havenot been paid at period-end. Inventory of $3,000 is purchased oncredit. The inventory purchased in transaction 3 is sold for $4,500on credit. The company collected the $4,500 owed to it pertransaction 4. Equipment is purchased for $5,000 cash. Depreciationof $1,000 is recorded on the equipment from transaction 6. TheSupplies account had a $3,800 balance at the beginning of thisperiod; a physical count at period-end shows that $800 of suppliesare still available. No supplies were purchased during this period.The company paid $12,000 cash toward the principal on a notepayable; also, $500 cash is paid to cover this note's interestexpense for the period. The company receives $8,000 cash in advancefor services to be delivered next period. Use negative signs withyour answers, when appropriate. Hint: For transaction 4, enter thenet effect amount for balance sheet answers.
